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Posts: 68 | Thanked: 8 times | Joined on Nov 2009
#1
Someone may have already pointed this out (please correct any errors in my logic)...

If tmo does subsidize the N900 which seems like a reasonable assumption, what is your best guess as to how much they will charge? It seems to me like they would charge in the $300 vicinity. The price of the N900 unsubsidized is $560 on newegg, free shipping/tax free. So An extra $260 you would save with a subsidized phone, although tmo may very well charge taxes making the savings more like $245.

Tmo is not being very upfront on their website when it comes to the price of unlimited text+web with the Even More plan but Even More Plus w/ 1000 minutes w/ unlimited text&web is $60 a month. I'm guessing with Even more w/ 1000 minutes w/ unlimited text&web costs around $80, and you must sign a 2 year contract. So do the math:
$20 savings per month X 24 months = $480 savings over 2 years!!

How is it in our interest in any way to subsidize this phone? If you subsidize you are locked in (I assume) to Even More for TWO YEARS.
 
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#2
Tmo will probably never subsidize a device that by design is unlocked. They might allow a twenty month payment plan, but probably no warranty.

Unlocked devices are evil-speak to their cost model for customer support and returns- not to mention a captive audience with apps they want you to keep on the phone. They like controlling the main source of functions for the phone.
 

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#3
Well, their argument if you go with the Even More as opposed to the Even More Plus is not just a subsidy, but upgrades, too, at discounted prices. If you're someone who will always get a new phone within two years and don't want to always pay full price, then it might make sense. But you're right, subsidies are a joke. You pay 20 more a mont for unlimited everything with a contract, AKA $480 more. When you get a new phone, there are taxes, shipping and a $35 upgrade fee if you're eligible for one. So it costs you more, actually, by the time you do everything.
 
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#4
Even if you want to upgrade within 2 years you will not receive full discounted price on the phone. I don't see why Nokia would release a phone that works only on Tmo's 3g if they didn't have something brewing.

How is it cost effective to subsidize though, maybe it makes sense if you're cheap and you don't want to pay a large chunk of cash up front but in the long run a subsidized phone on a more expensive plan is not a logical choice.
 
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#5
Originally Posted by zartan View Post
Even if you want to upgrade within 2 years you will not receive full discounted price on the phone. I don't see why Nokia would release a phone that works only on Tmo's 3g if they didn't have something brewing.

How is it cost effective to subsidize though, maybe it makes sense if you're cheap and you don't want to pay a large chunk of cash up front but in the long run a subsidized phone on a more expensive plan is not a logical choice.
Actally this isn't Nokia's fault. The subsidy system in America is broken, and that's it. Unfortunately this is a fact, and nothing else.

Nokia doesn't have any major deals with any European carriers either, and yet almost all of them will offer the N900 free on contract. The question why the hell the American carriers can't offer all phones for free on a 2 year long contract at $80 a month is completely beyond my ability of understanding. Their income for a 2 year long contract ($80*24) is greater (by far) than any phone's price - even including the Stevephone!
 
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#6
Originally Posted by c0rt3x View Post
Actally this isn't Nokia's fault. The subsidy system in America is broken, and that's it. Unfortunately this is a fact, and nothing else.

Nokia doesn't have any major deals with any European carriers either, and yet almost all of them will offer the N900 free on contract. The question why the hell the American carriers can't offer all phones for free on a 2 year long contract at $80 a month is completely beyond my ability of understanding. Their income for a 2 year long contract ($80*24) is greater (by far) than any phone's price - even including the Stevephone!
It really is nonsensical, the mobile carriers in the US just have us by the short and curly's. This new Tmo plan is a step in the direction of European carriers but not that big of a step. Still, if my reasoning is sound I see no reason to buy a subsidized N900 if they offer it. Why are people so pressed on a Tmo subsidy?

Last edited by zartan; 2009-11-05 at 19:26.
 
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#7
Originally Posted by zartan View Post
It really is nonsensical, the mobile carriers in the US just have us by the short and curly's. This new Tmo plan is a step in the direction of European carriers but not that big of a step. Still, if my reasoning is sound I see no reason to buy a subsidized N900 if they offer it. Why are people so pressed on a Tmo subsidy?
My assumption is many, are use to dropping half the amount they're gonna drop for this phone. It's "the american way" And you cant forget the wife, she's not gonna understand why her hubby has to spend 500 plus on a "silly phone" (her words not mine, lol)
 
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#8
 
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#9
You can also get unlimited web without texting for $30/mo stand alone on EM vs. $25 on EMP, so the monthly difference in plan prices just comes out to $15. Still, you need to get a $360 subsidy to make it worth while.
 
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#10
Originally Posted by goodfellabk718 View Post
My assumption is many, are use to dropping half the amount they're gonna drop for this phone. It's "the american way" And you cant forget the wife, she's not gonna understand why her hubby has to spend 500 plus on a "silly phone" (her words not mine, lol)
You're right, it is sort of the American way. It's almost like instant gratification : "save money NOW" when what we should be thinking is "what will be smarter in the long run". But wouldnt your wife understand if you explain to her the rate plans and that you/she will save money in the LONG RUN by paying up front and not going the subsidy route.
 
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